Chapter summary
Stakeholders and social responsibility
Principals and agents Social Sustainability
in governance responsibility
Agency theory Corporate Social Responsibility Environmental and social issues
• Principals (shareholders) vs (CSR) (Carroll, 1991) • Environmental and social
agents (directors) • Economic (basic requirement) footprint
• Agency problems • Legal (and comply with laws) • Social and environmental
• Agency monitoring • Ethical (go beyond the law) reporting
• Agency solutions • Philanthropic (help others)
Integrated Reporting <IR>
Stakeholders Corporate citizenship • Founded on integrated thinking
• Who are stakeholders? What (Matten and Crane, 2005) • Financial capital
do they want (claims)? • Limited view = self-interest only • Manufactured capital
• Classifying stakeholders • Equivalent view = CSR • Human capital
• Extended view = going above • Intellectual capital
and beyond • Natural capital
Power and interest • Social capital
(Mendelow, 1991) • Auditing Integrated Reports
• Low power, low interest = Ethical stances
minimal effort (Johnson et al, 2017)
• Low power, high interest = • Short-term stakeholder interest Social and environmental audits
keep informed • Long-term stakeholder interest • Social audits – engaging in
• High power, low interest = • Multiple stakeholders socially responsible activity;
keep satisfied • Shaper of society goal congruence with this;
• High power, high interest = assess objectives and priorities
key player • Environmental audits – agree
CSR viewpoints (Gray et al 1996) on suitable metrics; measure
• Pristine capitalist performance and compare
• Expedient with targets; report from
• Social contractarian auditor on compliance (or
• Social ecologist otherwise)
• Socialist
• Radical feminist
• Deep ecologist
CSR 2.0 (Visser, 2011)
• Responding to change: greed;
philanthropy; marketing;
management; responsibility
• CSR 2.0: creativity; scalability;
responsiveness; glocality;
circularity
• Our ability to change
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